HSBC UK delivered £3.6bn ($4.5bn) in mortgage growth annually in 2024, as it attributed its £790m ($1bn) growth in overall lending to this business.
In its annual results, HSBC UK said the average loan-to-value (LTV) ratio on new mortgage lending was 69%, compared to the overall mortgage portfolio average LTV of an estimated 53%.
It saw its UK mortgage market share widen from 8% to 8.1%, owing to a £3.7bn ($4.6bn) growth in the mortgage lending balances of its wealth and personal banking division.
The bank said it saw an opportunity to continue building its mortgage franchise in the UK and grow its share in SME banking.
In Q4, the division’s net interest margin rose from 2.5% to 2.53% annually but contracted from 2.57% in the previous quarter.
HSBC UK reported a profit before tax of £5.7bn ($7.2bn) for the year, compared to £6.6bn the year before.
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The wider group saw its profit before tax rise by £1.5bn ($2bn) to £25.6bn ($32.3bn) in 2024.
Georges Elhedery, Group CEO, said: “Our strong 2024 performance provides firm financial foundations upon which to build for the future, as we prioritise delivering sustainable strategic growth and the best outcomes for our customers. Since becoming CEO, I have focused on simplifying how we operate and injected energy and intent into the way we deliver our strategy.
“We are creating a simple, more agile, focused bank built on our core strengths. We continue to take deliberate and decisive steps. This includes creating four complementary, clearly differentiated businesses, aligning our structure to our strategy and reshaping our portfolio at pace and with purpose. I have put in place a smaller, core team of exceptionally talented leaders driven by a growth-orientated mindset and a firm focus on dynamically managing our costs and capital.”
He added: “We are embedding this approach across the organisation to ensure we are continually focused on these two important principles. Each targeted action we are taking is designed to unlock HSBC’s full potential. We look to the future with confidence and clarity of purpose.”
